The ministry of road transport and highways has saved the banking sector from Rs 3 lakh crore bad loans by reviving stalled projects, its minister Nitin Gadkari has said.
Banks were staring at almost 400 stuck projects worth lakhs of crores at the time he took charge in 2014.
“Most of these projects were delayed because of clearances or promoters not having the intent. We called several meetings for each of these projects and sorted them out,” Gadkari told the media at the Ficci-organised India PPP Summit on Wednesday.
“Had we not acted in time, banks would have had bad loans worth Rs 3 lakh crore more. We terminated several of these projects, changed conditions for a few and even spent money on completing (some) where the contractor wasn’t in a position to,” said the minister.
Addressing the summit, the minister said bankers, investors, contractors and the government need to collaborate for success of public-private projects.
He also mentioned prioritising the setting up of an efficient public transport system between states and within cities. Biofuel and electricity is the government’s focus to make mass transit environment-friendly and cost-effective.
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